GBP/USD retreats from 100-day SMA
Pair’s Outlook
Being that GBP/USD has just broken out of the bullish channel to the downside and met a strong support level, there is likely to be a pullback up to 1.6784/76. And regardless of the bullish technical indicators on the weekly and monthly time-frames, the sell-off will probably resume with renewed vigour. If this is the case, apart from the 100-day SMA, the monthly S1 at 1.6051 and the 200-day SMA at 1.6489 will be standing in the Sterling’s way.
Traders’ Sentiment
The sentiment towards the Cable stays neutral, as there is almost no difference between the amounts of bullish (47%) and bearish (53%) market participants. On the other hand, 50 pips from the spot price 61% of orders are to sell the Pound against the buck.
Source: DukascopyBankSA
